Ill. Admin. Code tit. 86, § 131.115 - Remote Retailers - Determination of Status as a Remote Retailer
a) Application of ROTA
1)
Beginning January 1, 2021, a
remote retailer is a retailer engaged in the occupation of selling at retail in
Illinois for purposes of ROTA if either of the following thresholds is
met:
A)
The cumulative gross receipts
from sales of tangible personal property to purchasers in Illinois are $100,000
or more; or
B)
The
remote retailer enters into 200 or more separate transactions for the sale of
tangible personal property to purchasers in Illinois. [35 ILCS
120/2(b)]
2) Remote retailers that meet or exceed the
thresholds in either subsection (a)(1)(A) or (B) shall be liable for all
applicable State and locally imposed retailers' occupation taxes administered
by the Department on all retail sales to Illinois purchasers.
b) A remote retailer shall
determine on a quarterly basis, ending on the last day of March, June,
September, and December, whether it meets the threshold of either subsection
(a)(1)(A) or (B) for the preceding 12-month period. If the remote retailer
meets the criteria of either subsection (a)(1)(A) or (B) for a 12-month period,
he or she is considered a retailer engaged in the occupation of selling at
retail in Illinois and is required to remit the retailers' occupation tax and
all retailers' occupation taxes imposed by local taxing jurisdictions in
Illinois, provided the local taxes are administered by the Department, and to
file all applicable returns for one year. A remote retailer shall begin
collecting taxes for sales beginning on the first day of the quarter
immediately following the end of the 12-month lookback period. Taxes so
collected shall be remitted to the Department no later than the 20th day of the
calendar month following the month in which they were collected or as otherwise
provided in accordance with Section 3 of ROTA. [35 ILCS
120/2(b)]
c)
At the end of that one-year
period, during which the remote retailer was remitting taxes, the remote
retailer shall determine whether it met the threshold of either subsection
(a)(1)(A) or (B) for the preceding 12-month period. If the remote retailer met
the threshold in either subsection (a)(1)(A) or (B) for the preceding 12-month
period, he or she is considered a retailer engaged in the occupation of selling
at retail in Illinois and is required to remit all applicable State and local
retailers' occupation taxes and file returns for the subsequent
year.
d) If, at the end of
the one-year collection period described in subsection (c), the remote retailer
determines that its sales to Illinois purchasers did not meet either of the
thresholds in subsection (a)(1) during that year, it must discontinue remitting
State and local retailers' occupation taxes. If a remote retailer is no longer
required to remit State and local retailers' occupation taxes, it must notify
the Department. However, it may alternatively notify the Department that it
wishes to change its registration status to voluntarily collect and remit use
tax as a courtesy to its Illinois purchasers, since those purchasers will still
incur a use tax liability that they must otherwise self-assess and remit
directly to the Department. (See 86 Ill. Adm. Code
150.805
for additional information.) All notifications made under this subsection (d)
shall be made electronically as required by the Department.
e) If a remote retailer is no longer required
to remit State and local retailers' occupation taxes, it must redetermine, on a
rolling quarterly basis, whether it is obligated to once more begin remitting
State and local retailers' occupation taxes. For each quarter ending on the
last day of March, June, September, and December, the remote retailer must
examine its sales for the immediately preceding 12-month period to determine
whether it met either of the thresholds in subsection (a)(1). If it met either
of those thresholds during that 12-month lookback period, it must remit State
and local retailers' occupation taxes for the following 12-month period. At the
end of that 12-month period, it must examine its sales, as provided in
subsection (a), to determine if it must continue to remit tax.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.